If 2023 was a year of wonder about artificial intelligence, 2024 has emerged as a hallmark year focusing on practical applications of AI technologies.
According to Arvind Narayanan, a professor at Princeton University and co-author of “AI Snake Oil: What Artificial Intelligence Can Do, What It Can’t, and How to Tell The Difference,” there has been a notable shift from merely launching powerful models to building functional products. Narayanan remarked, ‘The main thing that was wrong with generative AI last year is that companies were releasing these really powerful models without a concrete way for people to make use of them.’ This year, however, companies are beginning to create products that capitalize on these capabilities.
The first wave of generative AI attracted approximately 100 million users when ChatGPT was released two years ago. These users experienced a mixed bag of responses, with some finding the tool exceptionally useful while others discovered limitations.
Today, generative AI capabilities are becoming integrated into common technology services, often in ways that users might not immediately recognize—like AI-generated responses in Google searches or advancements in photo editing applications.
Since the rollout of GPT-4 in March 2023, industry expectations have recalibrated, leading to a dialogue shift. Narayanan emphasized, ‘What we’re seeing this year is gradually building out these products that can take advantage of those capabilities and do useful things for people.’
Investment in AI research and development remains a hot topic, particularly among tech executives during quarterly earnings calls. As these companies invest heavily—often requiring extensive energy and computing resources—some are turning to nuclear power to meet these needs. As Goldman Sachs analyst Kash Rangan noted, ‘We’re talking about hundreds of billions of dollars of capital that has been poured into this technology.’
While some analysts point out that AI has not yet made the revolutionary impact that initial projections suggested, many remain hopeful. Rangan commented, ‘We had this fascination that this technology is just going to be absolutely revolutionary, which it has not been in the two years since the introduction of ChatGPT. It’s more expensive than we thought and it’s not as productive as we thought.’ Nonetheless, Rangan acknowledges that these tools have improved productivity in various professional sectors.
The potential for job displacement due to AI remains a concern, particularly among workers in creative and service industries. Recent actions by the Screen Actors Guild-American Federation of Television and Radio Artists illustrate these worries, as members expressed fears about AI’s capability to replicate performances. Similar concerns have been raised by musicians and authors who worry about AI appropriating their creative works.
AI capabilities may still fall short in certain areas. Walid Saad, professor of electrical and computer engineering at Virginia Tech, stated, ‘Generative AI still can’t create unique work or completely new things.’ He explained that AI lacks the common sense inherent to human understanding.
As the technology matures, experts like Vijoy Pandey of Cisco predict that future AI iterations will function more like collaborative agents, helping solve complex problems by applying reasoning and planning. ‘We’re getting to an agentic future,’ Pandey noted, envisioning AI agents that possess specialized skills and can operate collectively.
The medical field is another area experiencing notable transformations thanks to AI, including breakthroughs that expedite drug discovery processes. The recent Nobel Prize in chemistry, awarded to research led by Google, showcases AI’s potential in medical advancements.
In conclusion, while 2024 has brought a more utilitarian perspective to AI technologies, ongoing discussions on capability, potential risks, and broader societal implications will guide the conversation as these tools continue to evolve.